What is the Definition of Loss to Lease?

Loss to Lease

Noun

Definition: The difference between the market rental rate for a property and the rent being paid for a similar property. It is an indicator of the changing market conditions. For example, if a property was leased for a one-year term at $1 000 per month and currently the market is getting $1,100 per month on similar properties, the loss to lease is $100 per month. Also called Free To Lease Difference.

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